2016 State Budget

The New South Wales (NSW) Treasurer, The Hon. Gladys Berejiklian MP, announced the following changes to State taxes as part of the 2016 State Budget.

These and other changes were introduced under the State Revenue Legislation Amendment (Budget measures) Act 2016.

Duties

The NSW Budget introduces a 4 per cent surcharge purchaser duty on the purchase of residential real estate by foreign persons to commence on 21 June 2016. The surcharge is in addition to the duty payable on the purchase of residential property.

Foreign persons will no longer be entitled to the 12 month deferral for the payment of stamp duty for off-the-plan purchases of residential property.

This surcharge will also apply to landholder transactions if there is a landholder liability and one or more of the properties owned by the landholder is classified residential and the purchaser is a foreign person who purchases shares or units in the landholder.

From 21 June 2016, all transferees who are liable to pay duty in respect of a dutiable transaction must lodge a declaration in the approved form.

For more information, visit the Frequent questions page.

Land Tax

The NSW Budget introduces a 0.75% surcharge land tax of the taxable value of residential land owned by a foreign person at midnight on 31 December in any year commencing with 2016.

The tax is separately assessed in relation to each parcel of land and is payable in addition to any land tax otherwise payable by a foreign person. There is no tax threshold to exempt land below the specified value nor any exemption for land occupied by a foreign person as a principal place of residence.

For more information, visit the Frequent questions page.

Payroll Tax Rebate (Jobs Action Plan)

The amendment increases the payroll tax rebate for the second year of employment from $3,000 to $4,000 for eligible employment commencing on or after 31 July 2016. The rebate amount for the first year of employment is $2,000 and for the second year it is increased to $4,000. A total of $6,000 per employee.

The amendment restricts the rebate payable in relation to employment commencing on or after 31 July 2016 to employers that have 50 or less full time equivalent employees not including the new employee or employees.

For more information, visit Jobs Action Plan page

From 21 June 2016, all transferees who are liable to pay duty in respect of a dutiable transaction must lodge a declaration in the approved form.

Last updated: 30 June 2016